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Five Times the Homeowners Pushed Out of HAMP Than In

Submitted by Jen Jones on Mon, 06/28/2010 - 8:52pm

Only three months ago, the President Obama reworked his $75 billion foreclosure prevention plan. Part two of the Home Affordable Modification Program (or HAMP), put into play new incentives to help those hardest hit by the housing crisis, targeting homeowners who were unemployed or underwater in their mortgages (i.e., folks owing more on their loans than their homes are worth).

Unfortunately, a month later, data showed that more than twice as many homeowners were kicked out of HAMP as were granted permanent relief.

Now, The Huffington Post is reporting that “More than five times as many homeowners were kicked out of the Obama administration's primary foreclosure-prevention program last month than were granted new relief, new data released Monday show[s]. Nearly 155,000 homeowners were bounced from the administration's Home Affordable Modification Program in May versus about 30,000 who were offered new temporary trial plans of lower monthly payments. About 48,000 more homeowners were granted five-year plans of lower payments compared to April, with an undisclosed amount offered five-year plans that have yet to complete the paperwork.”

When it’s all said and done, that means that in May alone about twice as many homeowners were kicked out of HAMP—a program that “promised to help struggling families hurt by the firms at the heart of the worst financial crisis and subsequent economic downturn since the Great Depression.” This while those same firms received hundreds of billions of dollars in taxpayer cash and guarantees as incentives to work with beleaguered homeowners.

And while this happens, more than a year since President Barack Obama told a crowd in Mesa, Ariz. of his plan to "help between seven and nine million families restructure or refinance their mortgages so they can afford—avoid foreclosure," almost 436,000 have been pushed from the program—a program meant to aid the very same mortgage-holders and that has only been able to give 340,000 applicants permanent relief.

And the banks don’t appear to be helping. As HuffPost reports, “Wells Fargo, the nation's fourth-largest bank by assets, put 40,759 of its borrowers in five-year HAMP plans, data through May show. However, the bank kicked 59,910 homeowners out of trial plans through April, according to Treasury. The number of homeowners bounced from the program also likely rose in May. Put another way, the number of homeowners Citigroup and Wells Fargo have tossed from HAMP trial plans is 60 percent greater than the total number of homeowners they've granted permanent relief.”

Since the banks aren’t helping, you may be wondering what can? If you’re having trouble making your mortgage, living in a home that will never have equity, and/or residing in an area that is currently devalued and an eyesore for the foreseeable future, bankruptcy can help get you back on the right side of the tracks. A bankruptcy will allow you to surrender your underwater home, negate your personal and financial liability, and move forward financially.

So, as American homeowners search for more immediate and steady mortgage help, many are instead turning to the simplicity of bankruptcy to stop their impending foreclosure and other creditor actions. If you too have been effected by the housing crisis, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.